--- title: "Creative Realities | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 16.35 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/286559214.md" datetime: "2026-05-15T11:47:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286559214.md) - [en](https://longbridge.com/en/news/286559214.md) - [zh-HK](https://longbridge.com/zh-HK/news/286559214.md) --- # Creative Realities | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 16.35 M Revenue: As of FY2026 Q1, the actual value is USD 16.35 M, missing the estimate of USD 16.52 M. EPS: As of FY2026 Q1, the actual value is USD -0.74, missing the estimate of USD -0.465. EBIT: As of FY2026 Q1, the actual value is USD -4.741 M. #### Revenue Creative Realities, Inc. reported total revenue of $16.3 million for the fiscal 2026 first quarter, an increase from $9.7 million in the prior-year period . This includes approximately $7.9 million from the acquisition of Cineplex Digital Media (CDM) in the current quarter . Hardware revenue rose to $4.6 million in Q1 2026, compared to $3.4 million in Q1 2025 . Service revenue increased to $11.8 million in Q1 2026, up from $6.3 million in Q1 2025, primarily due to the CDM transaction and deployment timing . Total sales declined sequentially from the fiscal 2025 fourth quarter due to seasonal factors and installation delays caused by extreme weather . #### Gross Profit and Margin Consolidated gross profit for the fiscal 2026 first quarter was $5.6 million, compared to $4.5 million in the prior-year period . The consolidated gross margin was 34.2% in Q1 2026, down from 45.7% in Q1 2025, reflecting a higher percentage of lower-margin hardware revenue . Hardware gross margin was 14.0% in Q1 2026, a decrease from 32.1% in the prior-year period . Service gross margin declined to 42.0% in Q1 2026 from 53.0% in Q1 2025 . #### Operating Costs Sales and marketing expenses increased to $2.9 million in Q1 2026, from $1.2 million in Q1 2025 . General and administrative (G&A) expenses rose to $8.9 million in Q1 2026, compared to $3.9 million in Q1 2025 . #### Operating Loss The company reported an operating loss of - $6.2 million in the first quarter of fiscal 2026, compared to an operating loss of - $0.7 million in the first quarter of fiscal 2025 . #### Net Income/Loss Creative Realities, Inc. posted a net loss of - $7.5 million and a net loss attributable to common stockholders of - $7.9 million for the quarter ended March 31, 2026 . This contrasts with a net income of $3.4 million in the prior-year period . Basic and diluted net loss per common share was - $0.74 in Q1 2026, compared to a net income per diluted share of $0.32 in Q1 2025 . #### Adjusted EBITDA Adjusted EBITDA was - $0.5 million in the first quarter of 2026, down from $0.5 million in the prior-year period . #### Cash Flow Net cash used in operating activities was - $1.723 million for the three months ended March 31, 2026, an improvement from - $2.449 million in the same period of 2025 . #### Balance Sheet Highlights As of March 31, 2026, Creative Realities, Inc. had cash on hand of approximately $1.8 million, an increase from $1.6 million at December 31, 2025 . Outstanding debt was approximately $47.5 million as of March 31, 2026, up from $44.0 million at the start of the fiscal year . #### Annualized Recurring Revenue (ARR) Annualized recurring revenue (ARR) was approximately $20.1 million at both the end of the first quarter of 2026 and as of December 31, 2025 . #### Outlook Creative Realities, Inc. anticipates stronger sales for the remainder of fiscal 2026, driven by its current book of business, a robust pipeline of new opportunities, and growth from the CDM acquisition . The company is investing in personnel and business development to accelerate revenue trajectory and improve profit margins through synergy realization and cost leverage . Management expects fiscal 2026 to be its best year ever, with a higher level of success in upcoming quarters . ### Related Stocks - [CREX.US](https://longbridge.com/en/quote/CREX.US.md) ## Related News & Research - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [Advance Auto Parts Reports First Quarter 2026 Results; Reaffirms Full Year 2026 Guidance | AAP Stock News](https://longbridge.com/en/news/287202242.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [Yext to Announce First Quarter Fiscal Year 2027 Financial Results on June 2, 2026 | YEXT Stock News](https://longbridge.com/en/news/286970613.md) - [GDEV announces results for the first quarter of 2026 | GDEV Stock News](https://longbridge.com/en/news/286909689.md)